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Fanduekisses

  • one year ago

Calculating Compound Interest HELP pls. *Will Smith face from pursuit of happiness*

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  1. Fanduekisses
    • one year ago
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    On the day of a child's birth, a parent deposits $30,000 in a trust fund that pays 5% interest, compounded continuously. Determine the balance in this account on the child’s 25th birthday.

  2. Fanduekisses
    • one year ago
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    I have to use the \[P(1+\frac{ 1 }{ n })^{nt}\] ?

  3. Fanduekisses
    • one year ago
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    But what is n??

  4. ShadowLegendX
    • one year ago
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    Idk how to do this, sorry @dan815 Smart boi

  5. anonymous
    • one year ago
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    I think you mixed up formulas. Compound interest formula for periodic compoundings (n = times interest is compounded annually) \[A=P \left( 1+\frac{ r }{ n } \right)^{nt}\] Continuously compounding interest \[A=Pe^{rt}\]

  6. anonymous
    • one year ago
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    you want to use the second one \[A=30000e^{(0.25\times25)}\]

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